Crowdfunding pools together (via the Internet) the resources of people interested in supporting efforts initiated by people or organizations for political campaigns, disaster relief, creating free software and more. Social media, online communities and micropayments have brought crowdfunding to the next-level, with New York based Kickstarter currently taking centre stage.
What is Kickstarter?
Kickstarter (previously Kickstartr) is a crowdfunding website for creative projects, based in Manhatten’s Lower East Side. At the moment, Kickstarter is the world’s largest funding platform. Weekly, thousands of people pledge millions of dollars to projects in several creative categories including films, music, video games, journalism, comics and more.
Kickstarter raised $10 million funding from backers including New York City based venture firm, Union Square Ventures. Angel investors include:
- Jack Dorsey
- Zach Klein
- Caterina Fake
Kickstarter is not about investment or lending
Kickstarter is a new form of commerce where project creators keep 100% ownership of their work and instead offer something unique to each project. In order to receive funding, a project must reach its funding goal by a set deadline. If the deadline is missed, any financial pledges don’t change hands. Project creators don’t need to develop their project without funds, and anyone can pledge money towards a project without risk, protecting both parties involved.
As of April 2012, Kickstarter had more than $175 million dollars pledged and successfully funded over 20,000 projects.